530419.BO WACC - Weighted Average Cost of Capital
The WACC of Sumedha Fiscal Services Ltd (530419.BO) is 10.4%.
| Range | Selected | |
| Cost of equity | 14.7% - 18.9% | 16.8% |
| Tax rate | 19.3% - 21.2% | 20.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.3% - 11.4% | 10.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.94 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.7% | 18.9% |
| Tax rate | 19.3% | 21.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.3% | 11.4% |
| Selected WACC | 10.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530419.BO | Sumedha Fiscal Services Ltd | 1.06 | 0.5 | 0.27 |
| 505576.BO | Goldcrest Corporation Ltd | 0.02 | 1.06 | 1.04 |
| 511628.BO | IM+ Capitals Ltd | 0.06 | 0.21 | 0.2 |
| 530723.BO | Asit C Mehta Financial Services Ltd | 1.05 | -0.14 | -0.08 |
| 531169.BO | SKP Securities Ltd | 0.13 | 0.33 | 0.3 |
| 531861.BO | Joindre Capital Services Ltd | 0.22 | 0.64 | 0.54 |
| 531950.BO | Vertex Securities Ltd | 0.16 | 1.02 | 0.9 |
| DBSTOCKBRO.NS | DB (International) Stock Brokers Ltd | 0.04 | 0.75 | 0.73 |
| KEYFINSERV.NS | Keynote Financial Services Ltd | 0 | 0.7 | 0.69 |
| ONELIFECAP.NS | Onelife Capital Advisors Ltd | 1.71 | 1.06 | 0.45 |
| STAMPEDE.NS | Stampede Capital Ltd | 0.18 | 1.11 | 0.97 |
| Low | High | |
| Unlevered beta | 0.45 | 0.69 |
| Relevered beta | 0.91 | 1.27 |
| Adjusted relevered beta | 0.94 | 1.18 |
530419.BO's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 530419.BO:
cost_of_equity (16.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.